Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows:
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Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
June 1 | Inventory | 240 units at $78 | |
10 | Sale | 180 units | |
15 | Purchase | 280 units at $80 | |
20 | Sale | 220 units | |
24 | Sale | 90 units | |
30 | Purchase | 320 units at $86 |
The business maintains a perpetual inventory system, costing by the last-in, first-out method.
Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 5. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
Schedule of Cost of Merchandise Sold | |||||||||
LIFO Method | |||||||||
Portable DVD Players | |||||||||
Date | Quantity Purchased | Purchases Unit Cost | Purchases Total Cost | Quantity Sold | Cost of Merchandise Sold Unit Cost | Cost of Merchandise Sold Total Cost | Inventory Quantity | Inventory Unit Cost | Inventory Total Cost |
Jun. 1 | 240 | $78 | $18,720 | ||||||
Jun. 10 | $ | $ | |||||||
Jun. 15 | $ | $ | |||||||
Jun. 20 | |||||||||
Jun. 24 | |||||||||
Jun. 30 | |||||||||
Jun. 30 | Balances | $ |
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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